Electricity price rise "no surprise" 

Figures showing the cost of domestic electricity has gone up five percent faster than inflation come as no surprise to a leading economist.

The Government's Energy Data File shows residential users have had to fork out for an average 4.8% price increase, every year since 2000.'

That's well ahead of the 1.4% increase for commercial users each year, and 2.8% for industrial users.

BNZ chief economist Tony Alexander says the winter shortage of power will force prices even higher.

He says people should expect their electricity cost to increase faster than inflation over the next two years as well.

Alexander acknowledges that the cost of power is crimping household spending, along with petrol and food price increases - but he blames the high cost of power on an inadequate electricity network.

He says there is no reason to expect things to improve any time soon, and that eventually, more construction is going to be needed.

Alexander says someone has to pay for it, and expects costs for residential users will be forced up to subsidise such major infrastructural change.

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